Consider a duopoly market with 2 firms. Aggregate demand in this market is given by Q = 500 – P, where P is the price on the market. Q is total market output, i.e., Q = Q A + Q B , where Q A is the...

Consider a duopoly market with 2 firms. Aggregate demand in this market is given by Q = 500 – P, where P is the price on the market. Q is total market output, i.e., Q = Q_A
+ Q_B, where Q_A
is the output by Firm A and Q_B
is the output by Firm B. For both firms, marginal cost is given by MC_i
= 20, i=A,B.

Assume the firms compete
a la
Cournot.

1. What are the equilibrium quantities?

2. What is the total quantity supplied on this market?

3. What is the equilibrium price in this market?